NEW YORK, April 25 (Reuters) - Shares of BJ's Restaurants are no longer cheap, having discounted growth far out into the future, Barron's reported in its April 26 edition.
Currently the company's stock trades at a valuation double its peers, although its expected growth is only 50 percent higher, Barron's reported in its column 'The Trader.'
The stock commands a price-to-earnings ratio of 41 times earnings per share estimates for this year. Rival stocks trade at about 20 times.
BJ's countered that it continues to gain market share and has been a comparable sales leader in casual dining for the past five years, Barron's said. The company sees room for at least 300 restaurants in the United States.
Barron's noted that there is a large short position in the stock, therefore a short squeeze is possible, which could raise shares temporarily.
(Reporting by Deepa Seetharaman; Editing by Bernard Orr) Keywords: BJRESTAURANTS/ (deepa.seetharaman@thomsonreuters.com; +1 646 223-6125; Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Currently the company's stock trades at a valuation double its peers, although its expected growth is only 50 percent higher, Barron's reported in its column 'The Trader.'
The stock commands a price-to-earnings ratio of 41 times earnings per share estimates for this year. Rival stocks trade at about 20 times.
BJ's countered that it continues to gain market share and has been a comparable sales leader in casual dining for the past five years, Barron's said. The company sees room for at least 300 restaurants in the United States.
Barron's noted that there is a large short position in the stock, therefore a short squeeze is possible, which could raise shares temporarily.
(Reporting by Deepa Seetharaman; Editing by Bernard Orr) Keywords: BJRESTAURANTS/ (deepa.seetharaman@thomsonreuters.com; +1 646 223-6125; Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.